- Ex Binance member exploited prior knowledge to buy tokens pre-TGE and sold for profits.
- Binance suspended the employee and is pursuing legal proceedings.
- Binance awarded $100,000 to four individuals who reported the misconduct.
Binance, a leading global cryptocurrency exchange, has temporarily suspended an employee for allegedly insider trading with non-public information. The case involved buying and selling an individual project’s tokens prior to its Token Generation Event (TGE). Which has raised issues of transparency and ethical trading practices in the sector.
Allegations and Investigation
In Binance’s announcement on X, one of the employees from the Binance Wallet team exploited insider information to deal with tokens and reap enormous gains. The concerned employee had worked in a business development capacity within BNB Chain before moving to the Binance Wallet team.
The exchange made it clear that the Wallet team itself would not receive confidential information regarding token launches, indicating the person abused knowledge gained in their previous role.
Binance initiated an in-house investigation after receiving complaints made to its Internal Audit department on March 23, 2025. Initial findings suggest that the employee made a strategic buy of a high volume of tokens prior to the announcement of the official TGE. Subsequently, some of the holdings were sold for large profits.
Disciplinary Measures
Based on these findings, Binance has taken the following measures:
- Suspension: The employee was suspended with immediate effect, subject to further disciplinary action.
- Legal Action: Binance has confirmed that it will assist the relevant authorities in the relevant jurisdiction of the employee and take appropriate legal action in accordance with applicable laws.
- Disposition of any related assets will be undertaken in full accordance with laws.
The Whistleblower Reward
In its attempt to maintain transparency and integrity, Binance issued a $100,000 bounty to four whistleblowers who reported the case through the official whistleblowing platform of the company. The exchange made it clear that reports posted online on X would not qualify for the reward. Furrther stressing the need to make use of official reporting channels.
The whistleblowers who made legitimate reports to Binance’s official email address (audit@binance.com) included:
- fo@g.com
- rd@g.com
- 7a@g.com
- 49@q.com
Industry and Community Response
While Binance has not come out to name the project in question in the purported case of insider trading, several users on X have theorized that it is related to the Binance Smart Chain memecoin UUU (U DEX Platform) token.
A popular crypto analyst on X, “pycharts,” posted a screenshot reportedly showing a wallet address belonging to Freddie Ng. Who is a member of Binance Wallet’s BD and Growth department, selling more than six million UUU tokens just prior to the market plummet.
Binance’s official Chinese-language account thanked the “feedback” and pledged users that the findings of the internal investigation would be made publicly. The exchange also reaffirmed its determination to fortify inner controls to keep misconduct from being repeated in the future.
This incident showcases Binance’s position on ensuring a just and ethical trading platform. The exchange assured users of its “zero tolerance” policy against any kind of malpractice and reiterated. Its commitment to creating a transparent and reliable ecosystem. Binance also urged community members to report any suspicious behavior through its official channels.
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